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Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) and HSBC Amanah Malaysia Berhad (“HSBC Amanah”), today entered into a Memorandum of Understanding (“MoU”) to collaborate on #financing4ESG, an initiative aimed at improving Malaysian Public Listed Companies’ (PLCs) ESG adoption practices.
Under this MoU, the Exchange will collaborate with HSBC Amanah in developing sustainability-linked Islamic financial products as well as ESG solutions aligned to the FTSE4Good ratings model and datasets for eligible PLCs. PLCs in the FTSE Bursa Malaysia EMAS index, which makes up the FTSE4Good ESG assessment universe, will have the opportunity to tap into HSBC Amanah’s Shariah-compliant ESG offerings while enabling them to accelerate their ESG adoption. This would help improve their ESG ratings for inclusion into the FTSE4Good Bursa Malaysia Index, the Malaysian capital market’s leading ESG index. In addition, for Shariah-compliant PLCs, it will be an opportunity for them to be included into the FTSE4Good Bursa Malaysia Shariah Index, which was introduced in July 2021.
“As we continue to provide guidance and assistance to PLCs to elevate them as regional leaders in this ESG space, the Exchange is pleased to welcome HSBC Amanah on-board this collaboration,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia. “Having PLCs that are able to successfully manage their ESG risks and opportunities via Shariah-compliant ESG solutions will certainly reinforce Malaysia’s role as a leader in Islamic finance.”
Raja Amir Raja Azwa, Chief Executive Officer of HSBC Amanah said, “We are pleased to join Bursa Malaysia in developing this important initiative towards enabling PLCs on their sustainability journey through the provision of advisory and Shariah-compliant financial solutions as a practitioner of Value-Based Intermediation. This is very much aligned to our own journey in transforming HSBC Amanah into a leading sustainable bank in line with the Triple-Bottom Line approach of Prosperity for People and Planet and in support of the Malaysian Government’s National Determined Contribution to the Paris Agreement.
In addition to the competitive financing offered by HSBC Amanah, PLCs will obtain non-monetary benefits from the collaboration's branding and capacity building exercises. In this regard, the Exchange will provide access to its investor relations engagements and event platforms, as well as the opportunity to participate in specialised technical workshops on climate-related disclosures.
This MOU with HSBC Amanah is a continuation of the earlier collaboration between the Exchange and OCBC Bank (Malaysia) Berhad and Alliance Bank Malaysia Berhad on 18 November 2021.
“We are pleased to collaborate with HSBC Amanah to identify, guide, implement and reinforce standards in Shariah-compliant ESG adoption among our PLCs,” commented Datuk Muhamad Umar Swift. “After two years of the pandemic, it is an opportune time for Malaysia to focus efforts on developing the Islamic finance market.”
The #financing4ESG initiative sets the foundation for Bursa Malaysia to collaborate with other ecosystem players to advance the nation’s ESG adoption, which is in line with the Exchange’s vision to be a leading sustainable and globally connected marketplace.
PLCs interested in learning more about the initiative or improving their general ESG practices may contact the Exchange’s Index & Sustainable Business unit via email at isb@bursamalaysia.com.
